Home prices rise in first quarter: report

TORONTO (Reuters) - Home-price increases moderated in the
first quarter, but remained solid due to a strong economy, high
immigration levels, and relatively low interest rates,
according to a report released on Thursday.

Nationally, the average price of a detached bungalow
climbed 8.3 percent to C$336,834 ($333,857) in the first three
months of 2008, according to Royal LePage Real Estate Services'
latest House Price Survey.

The price of a standard two-storey homes rose 7.1 percent
year-over-year to C$400,647, on average, and a standard
condominium increased 6.9 percent to C$240,423.

While those increases were down from the double-digit rises
of previous quarters, they still stand in stark contrast to the
hobbled U.S. housing market.

A crisis that began in the U.S. subprime mortgage sector
has eroded the value of U.S. homes and threatens to push the
country into recession.

"We know now that the Canadian real estate market has
followed a markedly different path from that of the United
States," said Phil Soper, president and chief executive of
Royal LePage.

"While Canada will not escape the negative impact of a
troubled American economy, Canadians' home equity should remain
safe, as the market moves into a period of slow growth, but
growth nonetheless."

Looking around the country, Saskatoon and Regina in the
province of Saskatchewan had the hottest markets, with average
prices for a detached bungalow soaring 50.3 percent to
C$226,250 and 49.6 percent to C$158,500 respectively.

"In Saskatchewan, gold, diamond and uranium mining, along
with prospering agriculture industries, have retained many
would-be out-migrates, and the more moderate cost of living has
also lured skilled workers from Alberta," the report said.
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